Every year before Christmas, Sandeep’s cake shop gets huge business as customers throng the outlet for bakery products. At present, he is looking for a business loan to accelerate growth and branding, but the lack of a regular and assured income, except around festivals, worries him. Will any financial institution give a loan knowing his small business is cyclical?

For small businesses like Sandeep’s, it is often difficult to avail business loans from the bank. The main reason being that the flow of income generally tends to be higher during particular periods and not throughout the year. However, such businesses shouldn’t lose heart.

For borrowers, like Sandeep, a flexi-business loan is the ideal solution. This unique offering allows borrowers to plan their EMIs as per the state of their finances. Financial institutions like Tata Capital offer flexi-business loans that are true to label when it comes to flexibility. It understands that though borrowers may need to take loans, sometimes the repayment scenarios can be very difficult even though the borrower wants to start paying back.

This is why it lets you decide EMIs for your business loan basis the state of your finances, growth plans for your business and cash flow requirements. Like your business, this loan is also flexible. To suit your requirements, there are three types of flexi EMI loan plans – step up flexi EMI, step down Flexi EMI & bullet flexi EMI.

So, there is no pressure of repayment if your cash flow requirements are steep. Let us find out about the eligibility and benefits of step up flexi EMI loan.


Here are a few situations which are ideal for flexi-business loan:

If you are just starting your business, you can consider a flexi-business loan. This is because any new business requires some time to stabilize. However, your loan requirements need to be met. A flexible business loan with a step up flexi EMI loan plan would ensure that the EMI increases annually in step with your business’ improving finances.

Often some businesses hit a purple patch. In such times, the business is generating a good amount of money and very regularly. This type of scenario allows you as a borrower to pay higher EMI for your business loan so that the burden of long-term payments is reduced as you are giving more money at the start. So, a step down flexi loan EMI plan is the best option as the EMI reduces each year. If in case your business hits a rough patch later, you can rest easy because a substantial portion of the loan has been repaid.

For businesses that are seasonal or cyclical, money is generated in lumps. Business may be quiet for most parts of the year, but swings into huge activity in short periods of time. A bullet flexi loan EMI plan allows you to take advantage of such lump sums. So, you can repay large blocks as and when you receive, while significantly reducing your EMI commitment.


A flexi-business loan, with different plans, is crafted to suit all business cycles.

  • A step up flexi EMI loan plan allows you to wait after large investments that often take time to bear fruit. So, you pay lower EMIs initially and then follow it up higher EMIs later.
  • A step down flexi EMI loan plan is built to let you take advantage of situations where the payoffs happen quickly. As you realize the immediate benefit of your business payoff, you also repay higher EMIs.
  • A bullet flexi EMI loan plan is in sync with business realities exhibiting sharp ups and downs. When the going is good, you repay in big amounts, thus lowering liability much quickly and allowing you breathing space during downturns.

Flexi-business loans from institutions like Tata Capital provide the right monetary help for small businesses. With its flexible EMIs, it becomes simpler and easier for these businesses to manage their cash flow without denting the financial structure.

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